AS 91399 · 4 credits · External
Market equilibrium
Demonstrate understanding of the efficiency of market equilibrium
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In plain EnglishAI study guide · check the NZQA standard
This standard asks you to show you understand when markets work efficiently and when government changes like taxes, tariffs, or subsidies affect how well they work. You'll explain how these policies change who wins and who loses (consumers, producers, government), and whether the overall outcome is good for society. You need to use supply and demand graphs to show what happens and back up your explanations with specific references to the data.
What to do, grades and common mistakes
What you actually do
- ·Modify supply and demand graphs accurately by adding new lines, identifying changed areas, and labelling what shifted and why
- ·Calculate and identify changes to consumer surplus, producer surplus, tax revenue, and deadweight loss using graph information or table values
- ·Explain how specific policies (like indirect taxes, tariffs, or subsidies) affect consumers, producers, and government using reasons grounded in affordability and profitability
- ·Use the correct economic terms (especially differentiating between 'demand' and 'quantity demanded') and apply definitions to the specific situation
- ·Reference specific numbers, labels, and anchor points from graphs or tables in your written explanations to support your answer
AAchieved
You identify that consumer or producer surplus changed and give one reason why, but you may not reference the graph or apply definitions to the context.
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